WeWork, founded in 2010, is an office leasing company.
The company delayed its initial public offering (IPO) last week after analysts raised too many red flags about the viability of its business model and CEO.
On Tuesday, CEO Adam Neumann stepped down.
I had my doubts about the business model a few years ago. But after reading the IPO prospectus, I saw that WeWork was a disaster in the making.
Corporate governance was a joke, and the business was burning through cash.
I would never invest in a company that is run by a CEO who’s looking to feather their nest and let the public be damned.
I explain why in my video below.
In this video, I discuss:
- The impact the CEO has on the future performance of a company.
- Why I would never invest in companies like WeWork.
- The time I put in to research every stock in my portfolio.
The next time you invest in a company, take the time to look at the CEO’s past performance.
As a passive investor — which you really are as a stockholder — you need to know who is running the business on a day-to-day basis. A great CEO adds shareholder value, while a mediocre or bad one detracts.
Once you find a company with a great CEO, you want to buy the stock only when it’s trading at a bargain price.
In my 35-plus years of experience, I’ve learned buying companies at bargain prices is a surefire way to make money.
And if a great CEO is at the helm, you can sleep better at night knowing they are growing the business.
In my Alpha Investor Report newsletter, I take a considerable amount of time to research every single stock I add to my portfolio.
From the CEO’s track record to the company’s underlying value — I do the heavy lifting so you can enjoy the rewards.
Editor, Alpha Investor Report
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